Picks and Pans in the Industrial Sector

Parker Hannifin and Gardner Denver are facing short-term issues.

We now support an outright rotation within industrials to "building-facing" verticals and away from the factory, as we believe industrial-capital goods could face a period of underperformance.

While we believe a slowdown in China and related sell-off in industrial metals augurs well for the group at large following several quarters of hard-to-digest inflation, demand implications support a more...